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The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the

The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2018, bank statement included the following information:

Balance, October 1, 2018 $ 32,740
Deposits 88,500
Checks processed (77,700 )
Service charges (400 )
NSF checks (1,650 )
Monthly loan payment deducted
directly by bank from account
(includes $450 in interest) (3,950 )
Balance, October 31, 2018 $ 37,540

The companys general ledger cash (checking) account had a balance of $42,639 at the end of October. Deposits outstanding totaled $4,274, and all checks written by the company were processed by the bank except for those totaling $5,670. In addition, a check for $550 for the purchase of office furniture was incorrectly recorded by the company as a $55 disbursement. The bank correctly processed the check during October. Required: 1. Prepare a bank reconciliation for the month of October. 2. Prepare the necessary journal entries at the end of October to adjust the general ledger cash account.

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Prepare the necessary journal entries at the end of October to adjust the general ledger cash account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

image text in transcribed

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Required 1 Required 2 Prepare a bank reconciliation for the month of October. Fitzgerald Company's Bank Reconciliation Balance per bank statement Add: Deduct: Corrected cash balance Balance per books Deduct: Corrected cash balance Journal entry worksheet Record the correction of error in cash disbursement. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet Record the credits to cash revealed by the bank reconciliation. Note: Enter debits before credits. Transaction Credit General Journal Debit 2 2

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